"We propose a strengthened tax reduction of 12 billion kronor. For the average wage-earner that will mean they will be able to keep 200 to 300 kronor more after taxes each month," said Prime Minister Fredrik Reinfeldt, the leader of the Conservative Party. This will be the fifth time they have cut income taxes since winning power in 2006.
The government also aims to raise the breaking point at which high-income citizens have to pay an additional state income tax.
"When we reached a political consensus on taxes 20 years ago the idea was that only about 15 percent of the population would pay the state income tax", Liberal Party leader Jan Björklund said at the press conference.
"Now, we are up to nearly every third person, and that was never our intention. Therefore, it is important to raise the cut-off point and reduce the size of this group. The cost of this measure is about 3 billion kronor, We want it to pay off when people take responsiblity in the workplace and develop themselves," he added.
The new tax plans will form part of the Autumn budget, to be presented to parliament later this week. The opposition Social Democrats, Green and Left parties say they will do all they can to stop the minority government's tax cuts in parliament.